Estimated GDP Growth at 5.7% for 2013-2014 – RBI
The RBI’s has projected a GDP growth for 2013-14 at 5.7% as against finance ministry’s projection of 6.1%- 6.7%. Indian economy grew by 5% in 2012-2013 on account of poor performance of manufacturing, agriculture and services sector. RBI’s current assessment is that economic activity will remain subdued and will only show a modest pick-up in second half of 2013-14, subject to appropriate conditions in the later part of year.
Assumptions for calculating growth rate
Agricultural Sector: Normal monsoon and agricultural growth are expected to return to trend levels in second half of 2013-14.
Industrial & Service Sector: Growth outlook expected to be subdued primarily due to:
- Decline in new investment
- Existing projects stalled by bottlenecks and implementation gaps
- Sluggish growth in services and exports driven by bleak global sentiments.